Regulator in Barbados Rejects Utility’s 90MW BESS Proposal Until Cost-Benefit Analysis is Conducted

1. Barbados is targeting 100% renewable energy by 2030 and has approved the CETR mechanism to recover costs for clean energy investments.
2. BLPC has applied for preapproval of investments and cost recovery for various clean energy projects, including BESS, AGC systems, and DERs aggregation and control platform.
3. The regulator, the FTC, has only approved the recovery of costs for a portion of BLPC’s proposed BESS projects, citing the need for more detailed cost-benefit analysis and consideration of alternative investments.

Barbados is focused on transitioning to 100% renewable energy by 2030, with the Clean Energy Transition Rider (CETR) allowing national utility BLPC to recover upfront costs associated with clean energy investments. The utility had applied for preapproval of investments in BESS, AGC systems, synchronous condensers, and DERs projects. The investment in synchronous condensers was not approved, while the AGC and DERs projects were given the green light.

BLPC planned to install 204MW of BESS assets by 2030, with a mix of 10MW and 1MW systems being implemented over the years. The FTC only approved the recovery of costs for a portion of the proposed projects, citing a lack of detailed analysis in the utility’s proposal. The commission highlighted the need for a thorough cost-benefit analysis considering alternative investments and T&D infrastructure costs.

The government of Barbados has modeled a need for 204MW of energy storage by 2030 to support its renewable energy goals. Moves are being made to increase storage capacity, including a 50MW energy storage pilot program and an established energy storage pilot tariff framework. The FTC emphasized the importance of a comprehensive analysis before granting full approval for the 90MW BESS project.

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